Can a principal broker act as a principal broker for two firms?
Yes, a principal broker may act as a principal broker for two (2) firms as long as both firms are in the same location. See, T. C. A. § 62-13-309(g). As used in this subsection (g), “the same location” means that both firms are located at and use the same physical address.
Can I work from my home?
A licensee may have the main office or branch office of a firm in their home if the zoning allows a real estate office at that location. The licensee must apply for a firm license and assign a Principal Broker. Please refer to RULE 1260-02-.03 OFFICES for requirements for offices.
How do I transfer my license to a new firm?
Licensees needing to transfer to another firm may submit their application through their CORE account. A completed TREC-1 form should be included with the online application. The fee associated with the transfer is $25.
You must take your license with you to your new firm. The Commission does not issue a new license for a transfer. If you require a new license, you can request a duplicate through your CORE account.
How should Deposits and Earnest Money be handled?
Brokers are responsible at all times for deposits and earnest money accepted by them or their affiliate brokers, in accordance with the terms of the contract. The broker shall maintain for a period of at least (3) years accurate records of the account showing. See TCA 62-13-321.
(1) The depositor of the funds;
(2) The date of deposit;
(3) The date of withdrawal;
(4) The payee of the funds; and
(5) Other pertinent information that the commission may require.
Rental deposits must be held in a separate account.
Funds should be disbursed or interplead within twenty-one (21) calendar days from the date of receipt of a written request for disbursement of earnest money. See TCA 1260-02-.09.
I recently transferred to a new real estate firm and a sale closed with my old firm. Do they still have to pay me?
"(1) The commissions earned by an affiliated licensee while working under a principal broker can still be paid after one (1) or more of the following circumstances occur:
(a) The affiliated licensee transfers to a new broker;
(b) The affiliated licensee retires his or her license;
(c) The affiliated licensee is in broker release status;
(d) The affiliated licensee allows his or her license to expire; or
(e) The death of the affiliated licensee."
See 1260-02-.39 COMMISSIONS EARNED BY AFFILIATED LICENSEES.
What documents must a principal broker maintain as part of the firm's records?
1260-02-.40 ELECTRONIC RECORDS.: "Pursuant to T.C.A. § 62-13-312(b)(6), real estate licensees must preserve records relating to any real estate transaction for three (3) years following the consummation of said real estate transaction. Real estate licensees may utilize electronic recordkeeping methods to comply with this requirement..."
These files must contain, at a minimum, the following:
Listings
Offers (even offers that did not become contracts)
Contracts
Closing Statements
Agency Agreements
Agency Disclosure Documents
Property Disclosure Forms
Correspondence
Notes
Can a lawyer receive a referral fee from a real estate firm?
No. A lawyer can only receive a referral fee or commission if they are properly licensed as a real estate broker or affiliate and the compensation is paid to them by the licensed real estate firm where they are affiliated.